Abstract
Increase in life expectancy is a key indicator to gauge the economic development of a country. Enormous studies have been done to test this hypothesis, and the conclusion is still un-decided. This study aims to explore the impact of life expectancy on economic growth in G7 countries via regression approach. Keeping in view the unique population structure of each of these G7 countries, the trend of life expectancy for each country is also observed. Findings of the study indicate that life expectancy in G7 countries increases with constant rate. The increase in life expectancy is accompanied with the increase in Gross Domestic Product (GDP) per capita income. We have also included the population growth rate as another important factor contributing towards GDP. It is worth mentioning here that increase in life expectancy directly affects per capita real income due to higher expenditure on health. Moreover, it is also found that increase in GDP lessens the population growth.
Highlights
In recent years, the increase in life expectancy has become a critical topic in population studies, as it is conditionally dependent on the economic growth and the expenditure on health improvement
This study aims to study the Gross Domestic Product (GDP), population growth rate and life expectancy of G7 countries
Studies showed that high income group countries lead to increase in the life expectancy
Summary
The increase in life expectancy has become a critical topic in population studies, as it is conditionally dependent on the economic growth and the expenditure on health improvement. Peterson (2017) studied the relationship between population growth and economic growth of high income and low income countries on globe and reviewed the related literature in this context. Few countries show negative growth rate indicating that a high percentage of the population consists of elderly people They investigated relationship between growth rate, growth in per capita output, and overall economic growth using past 200 years data. In order to test the hypothesis they used 47 countries data taken from literatures (UN Demographic Yearbook, Maddison(2003)) Their result supports the previous findings on causal effect of life expectancy on income per capita growth. Model Selection and Data Analysis The data of GDP (per capita income) and Life Expectancy of G7 countries are taken from World Bank web site www.world bank.com.
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